@Aishwarya Upadhye Thank you for posting your question!
I understand that you are trying to backup an Azure stack hci host node using MABS and recovery point is not getting created online.
Error: "The recovery option is disable" not sure what that means but if online backup failed there is no online data to restore.
Perhaps you could go to monitoring tab and share a print from failed on job which might contain more details about the actual error message.
Go to Monitoring tab > All Jobs Filter and Failed on the right side.
"failed 1 time" means failed but not the reasons, so we need the error details that will tell us the real error.
Update:
You try can re-creating the protection group by doing not a manual replica but a replica creation at that time when protection group is created. Refer to - https://techcommunity.microsoft.com/t5/system-center-blog/how-to-perform-a-manual-initial-replica-on-dpm-modern-backup/ba-p/351767
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